Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

NTT (Nippon Telegraph & Telephone) / Technical Analysis

<p><a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a> shows a familiar bottom set up as the current decline becomes extended near support levels that have acted as rally platforms over recent years. It would take a severe break below this multiple low support zone to warrant a bearish view. We like buy weakness for a good tactical rise and then look for a fade trade and re test of this low zone.</p>
<p>Five key lows represent this support zone going back to 2016. This would be the sixth test and rally barring a hard break below 2,100. This is a compelling buy zone with supporting evidence in indicators cycles.</p>
<p>Dual price highs at 2,700 mark the macro pivot resistance. Rally resistance targets/hurdles come in at 2,430 and 2,525.</p>

NTT (Nippon Telegraph &amp; Telephone) (9432 JP) shows a familiar bottom set up as the current decline becomes extended near support levels that have acted as rally platforms over recent years. It would take a severe break below this multiple low support zone to warrant a bearish view. We like buy weakness for a good tactical rise and then look for a fade trade and re test of this low zone.
Five key lows represent this support zone going back to 2016. This would be the sixth test and rally barring a hard break below 2,100. This is a compelling buy zone with supporting evidence in indicators cycles.
Dual price highs at 2,700 mark the macro pivot resistance. Rally resistance targets/hurdles come in at 2,430 and 2,525.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: NTT Docomo, Evergrande Properties/Auto, Wilmar, Swire, Immunomedics

Travis Lundy

<p>Welsh poet Dylan Thomas is famous for one poem in particular - one called "Do not go gentle into that good night." It is a great poem, and I can always spare a brief moment to <a href="https://poets.org/poem/do-not-go-gentle-good-night" target="_blank" rel="noopener">re-read it</a>. It starts...</p><p><em>Do not go gentle into that good night,</em><br><em>Old age should burn and rave at close of day;</em><br><em>Rage, rage against the dying of the light.</em></p><p>This deal, and the accompanying <a href="https://www.nttdocomo.co.jp/english/info/media_center/pr/2020/pdf/english_news_release_200929_02.pdf" target="_blank" rel="noopener">documentation</a> (and Nikkei article <a href="https://asia.nikkei.com/Business/Business-deals/NTT-to-take-over-wireless-unit-Docomo-for-38bn" target="_blank" rel="noopener">updates</a>) tell you NTT is not going gentle.</p><p>An unkind interpretation might use a later stanza to point out that <em>"grave men, near death, who see with blinding sight, Blind eyes could blaze like meteors and be gay"</em> may produce a last gasp cascade of brilliance, but here the strategic rationale notes, and accompanying management actions are putting the world on notice.</p><p>We're not going gentle.</p><hr><p>This morning, exactly eight hours after the Nikkei published articles in <a href="https://www.nikkei.com/article/DGXMZO64352350Y0A920C2MM8000/" target="_blank" rel="noopener">Japanese</a> and <a href="https://asia.nikkei.com/Business/Business-deals/NTT-to-take-over-wireless-unit-Docomo-for-38bn" target="_blank" rel="noopener">English</a> that <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a> would soon launch a Tender Offer to buy out the minority shareholders of its mobile telephony subsidiary and largest mobile phone operator in Japan by subscriber count <a href="https://www.smartkarma.com/entities/ntt-docomo-inc" target="_blank" data-smartkarma-citation="entities:1089:1" rel="noopener">NTT Docomo Inc (9437 JP)</a>, NTT made a short release to the exchange saying that nothing had yet been decided regarding the subject "NTT to make DoCoMo a wholly-owned subsidiary" but that NTT would hold a board meeting that day to discuss the matter and if an announcement were warranted, there would be one.</p><p>"Nothing has been decided" in Japan Corporate-Speak specifically meant that the board had not resolved the matter at a board meeting. </p><p>Sure enough, after the close, and after a day when the shares were pegged at limit-up all day long and the gray market traded ¥3450-3500 during that time, after the close NTT and NTT Docomo announced that NTT would conduct a Tender Offer to buy out minorities at ¥3900/share, which is a 40.5% premium to the undisturbed price.</p><p>Given the ownership circumstances and the trading prices of other telecom stocks out there, this is a <em>Very High Price Indeed.</em></p><p>Interestingly, there is more than a hint of frustration shown by NTT in the Management Policy After the Tender Offer section of the document (so far only available in the DoCoMo Opinion <a href="https://www.nttdocomo.co.jp/english/info/media_center/pr/2020/pdf/english_news_release_200929_02.pdf" target="_blank" rel="noopener">document</a>) and in the separate document outlining several management changes to be made 1 December (i.e. 1 week after settlement of the Tender Offer). That includes the NTT DoCoMo CEO Yoshizawa who will resign his board seat, and his roles as CEO and President. That is a wow. He will be replaced by Motoyuki Ii. There will be one more Representative Director added, and two more EVPs elevated to fill the vacuum (both internal). </p><p>There is considerable explanation about their plans in that doc. For anyone curious about what happens to NTT next, it is <em>well worth a read</em>. They plan on going big in B2B2X with integrated mobile solutions, targeting corporates and local governments. It appears they are going to do more to make dbarai (DoCoMo's cashless payment solution) scaled bigger. Done right, this could both substantially lower costs and could make a much higher throughput system. Consumer mobile effectively takes a back seat. There is more strategic information here than one normally gets. One would normally look at <a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data Corp (9613 JP)</a> but I think it is a bit early for that. NTT Data may benefit from dev work, but this is an NTT-DoCoMo deal to start. </p><p>It may be too early to judge exactly whether NTT will adequately monetize the extra generosity it is showing in buying out DoCoMo at ¥3900/share, but it appears they will not go gently into that good night.</p><p>As always, more below the fold. </p>

Welsh poet Dylan Thomas is famous for one poem in particular - one called "Do not go gentle into that good night." It is a great poem, and I can always spare a brief moment to re-read it. It starts...Do not go gentle into that good night, Old age should burn and rave at close of day; Rage, rage against the dying of the light.This deal, and the accompanying documentation (and Nikkei article updates) tell you NTT is not going gentle.An unkind interpretation might use a later stanza to point out that "grave men, near death, who see with blinding sight, Blind eyes could blaze like meteors and be gay" may produce a last gasp cascade of brilliance, but here the strategic rationale notes, and accompanying management actions are putting the world on notice.We're not going gentle.This morning, exactly eight hours after the Nikkei published articles in Japanese and English that NTT (Nippon Telegraph &amp; Telephone) (9432 JP) would soon launch a Tender Offer to buy out the minority shareholders of its mobile telephony subsidiary and largest mobile phone operator in Japan by subscriber count NTT Docomo Inc (9437 JP), NTT made a short release to the exchange saying that nothing had yet been decided regarding the subject "NTT to make DoCoMo a wholly-owned subsidiary" but that NTT would hold a board meeting that day to discuss the matter and if an announcement were warranted, there would be one."Nothing has been decided" in Japan Corporate-Speak specifically meant that the board had not resolved the matter at a board meeting. Sure enough, after the close, and after a day when the shares were pegged at limit-up all day long and the gray market traded ¥3450-3500 during that time, after the close NTT and NTT Docomo announced that NTT would conduct a Tender Offer to buy out minorities at ¥3900/share, which is a 40.5% premium to the undisturbed price.Given the ownership circumstances and the trading prices of other telecom stocks out there, this is a Very High Price Indeed.Interestingly, there is more than a hint of frustration shown by NTT in the Management Policy After the Tender Offer section of the document (so far only available in the DoCoMo Opinion document) and in the separate document outlining several management changes to be made 1 December (i.e. 1 week after settlement of the Tender Offer). That includes the NTT DoCoMo CEO Yoshizawa who will resign his board seat, and his roles as CEO and President. That is a wow. He will be replaced by Motoyuki Ii. There will be one more Representative Director added, and two more EVPs elevated to fill the vacuum (both internal). There is considerable explanation about their plans in that doc. For anyone curious about what happens to NTT next, it is well worth a read. They plan on going big in B2B2X with integrated mobile solutions, targeting corporates and local governments. It appears they are going to do more to make dbarai (DoCoMo's cashless payment solution) scaled bigger. Done right, this could both substantially lower costs and could make a much higher throughput system. Consumer mobile effectively takes a back seat. There is more strategic information here than one normally gets. One would normally look at NTT Data Corp (9613 JP) but I think it is a bit early for that. NTT Data may benefit from dev work, but this is an NTT-DoCoMo deal to start. It may be too early to judge exactly whether NTT will adequately monetize the extra generosity it is showing in buying out DoCoMo at ¥3900/share, but it appears they will not go gently into that good night.As always, more below the fold. 

NTT Deal for DoCoMo - Not Going Gentle, Definitely Raging Against the Dying of the Light

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

NTT (Nippon Telegraph & Telephone) / Event-Driven

<p>The explanation supporting NTT’s buyout of Docomo (in Japanese but translated below) is interesting and we believe it supports our initial thoughts on this development. What we didn’t expect was a ¥3,900 tender price.</p>

The explanation supporting NTT’s buyout of Docomo (in Japanese but translated below) is interesting and we believe it supports our initial thoughts on this development. What we didn’t expect was a ¥3,900 tender price.

NTT – NTT Is Going Big and Our Suspicions Are Aroused Further

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

NTT (Nippon Telegraph & Telephone) / Equity Bottom-Up

<p>In our latest Smartkarma Webinar, we are joined by Insight Provider <a href="https://www.smartkarma.com/profiles/kirk-boodry" target="_blank" data-smartkarma-citation="accounts:1920" rel="noopener">Kirk Boodry</a> to discuss the shock announcement from <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a>  that it will buy in the 34% minority stake in DoCoMo for almost ¥4 trillion, taking the mobile unit private in what's expected to be the largest domestic tender offer for a Japanese company.</p><div><h3>The webinar will be hosted on Wednesday, 30/September/2020, 5.00pm SGT/HKT.</h3></div><div>
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<div class="content-highlight"><h2><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=87999858837" target="_blank" rel="noopener">Register for the Webinar here</a></h2></div>
<p></p>
</div>
<p>Kirk Boodry has over 20 years experience including time in NY, Tokyo, London, and Singapore. He first started covering Japanese equities in 2000 and Chinese equities in 2014.</p>
<p>His firm, Redex Holdings, is a Tokyo-based company providing independent equity research and consulting services. Outside of finance, the company is developing Internet media applications and content.</p>
</div>

In our latest Smartkarma Webinar, we are joined by Insight Provider Kirk Boodry to discuss the shock announcement from NTT (Nippon Telegraph &amp; Telephone) (9432 JP)  that it will buy in the 34% minority stake in DoCoMo for almost ¥4 trillion, taking the mobile unit private in what's expected to be the largest domestic tender offer for a Japanese company.The webinar will be hosted on Wednesday, 30/September/2020, 5.00pm SGT/HKT.

Register for the Webinar here


Kirk Boodry has over 20 years experience including time in NY, Tokyo, London, and Singapore. He first started covering Japanese equities in 2000 and Chinese equities in 2014.
His firm, Redex Holdings, is a Tokyo-based company providing independent equity research and consulting services. Outside of finance, the company is developing Internet media applications and content.


Smartkarma Webinar | NTT's DoCoMo Privatisation - A Long-Term Win?

Japan

Nippon Telegraph and Telephone Corporation provides a variety of telecommunication services, including telephone, telegraph, leased circuits, data communication, terminal equipment sales, and related services. The Company provides both local and long distance telephone services within Japan.

NTT (Nippon Telegraph & Telephone) (9432 JP)

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NTT (Nippon Telegraph & Telephone) (9432 JP)

NTT (9432 JP) 2,150 Buy Level

NTT (Nippon Telegraph & Telephone) (9432 JP) shows a familiar bottom set up as the current decline becomes extended near support levels that...

Thomas Schroeder

Last Week in Event SPACE: NTT Docomo, Evergrande Properties/Auto, Wilmar, Swire, Immunomedics

Last Week in Event SPACE ... Plus, other events, CCASS movements and Mood Spins. (This insight covers specific insights & comments...

David Blennerhassett

NTT Deal for DoCoMo - Not Going Gentle, Definitely Raging Against the Dying of the Light

This morning, exactly eight hours after the Nikk

Travis Lundy

NTT – NTT Is Going Big and Our Suspicions Are Aroused Further

The explanation supporting NTT’s buyout of Docomo (in Japanese but translated below) is interesting and we believe it supports our initial thoughts...

Mio Kato

Smartkarma Webinar | NTT's DoCoMo Privatisation - A Long-Term Win?

In our latest Smar

Smartkarma Research

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